Adnoc awards $1.34bn Estidama project contracts
3 July 2023
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Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has awarded contracts for two key packages of its project to upgrade its sales gas pipeline network across the UAE.
The total value of the two engineering, procurement and construction (EPC) contracts for the project, also known as Estidama, is estimated to be $1.34bn, Adnoc Group said in a statement on 3 July.
UK-headquartered Petrofac has been awarded the EPC contract for package 2 of the Estidama project. Package 2 is understood to be worth $720m, sources told MEED.
A consortium of Abu Dhabi’s National Petroleum Construction Company (NPCC) and Lebanon-headquartered CAT Group has won Estidama package 3, which is valued at approximately $630m, according to sources.
The new pipeline will extend Adnoc Gas’ existing 3,200-kilometre pipeline network to over 3,500km, enabling the transportation of higher volumes of natural gas to customers in the Northern Emirates of the UAE.
“This strategic pipeline extension will drive further growth for Adnoc Gas as it continues to supply sustainable gas supplies in the UAE in support of the company’s strategy to increase its market share and enhance its customer base,” Adnoc said in its statement.
Over 70 per cent of the contracts’ value is expected to flow back into the UAE economy under Adnoc Group’s In-Country Value (ICV) localisation scheme, Adnoc added.
Key Estidama packages
Adnoc Gas Processing, now part of Adnoc Gas, initially intended to issue separate EPC tenders for packages 2 and 5. However, it tendered these as a combined job in June last year. Contractors submitted technical bids for these packages in August 2022.
Eventually, Adnoc Gas divided the scope of work on combined packages 2 and 5, MEED reported in February this year.
Following the revision of the scope of work, Estidama package 2 broadly involves building a new facility at the KP-30 location of the Habshan gas compressor plant (HGCP) and installing three variable frequency drive motor-driven compressors.
Adnoc Gas received technical proposals for Estidama package 2 on 24 February. Contractors submitted commercial bids by 27 March.
Along with Petrofac, the following contractors, among others, are understood to have submitted commercial bids for Estidama package 2:
- Archirodon (Greece)
- Engineering for Petroleum & Process Industries (Enppi, Egypt)
- Larsen & Toubro Energy Hydrocarbon (India)
- NPCC (UAE)/Target Engineering Construction Company (UAE)/Tecnicas Reunidas (Spain)
Package 5 is expected to be tendered separately to contractors as part of a planned second phase of the sales gas pipeline upgrade project.
ALSO READ: Gas takes centre stage in Adnoc downstream expansion
Adnoc Gas issued the main tender for Estidama package 3 in late June last year.
Contractors submitted technical bids for the package in August 2022, while commercial bids were submitted by 21 November.
MEED previously reported that Italy-headquartered Arkad was the lowest bidder for package 3, with a quotation of about $590m. A source close to the project said that following months of “intense negotiations, due diligence processes and evaluation of project delivery capabilities”, Adnoc Gas picked the consortium of NPCC and CAT for the package.
The scope of work on package 3 covers the installation of new gas pipelines from the Habshan complex to the HGCP, and from the HGCP to the Sweihan customer receipt, along with associated facilities.
Sales gas pipeline project packages
Erstwhile Adnoc Gas Processing, now consolidated into Adnoc Gas, initially divided the EPC work on its estimated $2bn sales gas pipeline network enhancement project into seven main packages.
China Petroleum Pipeline Engineering performed the Estidama project’s front-end engineering and design works as part of a contract worth about $6m that Adnoc Gas Processing awarded the Chinese state-owned firm in October 2020.
MEED reported in December 2021 that Abu Dhabi-based contractor Integrated Specialised General Contracting Company (Iscco) had won package 1, which is understood to have a contract value of $18m.
Iscco subcontracted the detailed engineering works on package 1 to the Abu Dhabi branch of Sweden-headquartered consultancy Rejlers.
Adnoc Gas issued the main tender for package 6 and packages 3 and 2+5 in late June last year.
Contractors also submitted technical bids for package 6 in August 2022 and commercial bids by 21 November.
Work on package 6 entails the installation of a 52-inch, 74km pipeline from Sweihan to Al-Shuwaib in Abu Dhabi and building two block valve stations.
Adnoc Gas combined the scope of work on packages 4 and 7, and issued the main tender in November last year.
Contractors submitted technical bids for combined package 4+7 by 27 March. The project operator is yet to call for commercial bids for this package.
The main scope of work on the Estidama combined package 4+7 involves laying a new pipeline from the Al-Shuwaib pig launcher and pig receiver station to the Sajaa gas facility in Sharjah.
The scope also covers building a new gas pipeline between BVS-2/KP28.7 in Abu Dhabi to Dubai’s Margham gas facility to meet increased gas demand from Adnoc Gas Processing’s customer Dubai Supply Authority (Dusup).
“Up to a dozen contractors are likely to have submitted technical bids for [combined package] 4+7,” one source said.
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The untapped potential of real estate development frameworks
7 October 2025
In the complex and fragmented real estate sector, establishing a standardised development framework can be a transformative tool for developers.
An astronomically growing and increasingly profitable real estate sector in the GCC is encouraging greater consolidation. Often times a single master developer gets involved in the full project value chain: from early ideation, market research and planning to subsequent construction, operations and end-of-life activities.
But greater exposure to the real estate sector is fraught with perils. For one, real estate is a traditionally fragmented business. It involves a dizzying web of managerial, consulting and construction trades with complicated interdependencies and many unaccounted-for specialised roles.
Second, particularities of location, the political, physical, climate and social landscapes make every project a challenging venture. And a multitude of codes, regulations and standards add to the entanglement by requiring compliance at every stage, with gates needing multi-level approvals.
But a standard real estate development framework can make work significantly simpler. It is a structured approach that defines major stages from site selection and feasibility analysis, to securing financing, design work, construction and eventual sales or operations.
The framework describes everything a developer should consider at every stage. Project activities, timelines, interdependencies, risks, types of outputs and financial transactions are outlined in detailed, ensuring projects are executed systematically. Even team and external stakeholders assignments to activities are outlined with clear delegation of authorities.
The benefits of deploying such frameworks can hardly be overstated and developers can reap a wide range of major awards from deploying them.
> Opportunities to boost earnings
By mapping the complete range of activities, particularly for community developments, downstream revenue-generating assets or services are often revealed. Thus, companies are able to grow by diversifying or spinning off new capabilities that retain earnings.
Examples of these are waste management services or rental of advertisement boards, or even joint ventures with operators in hospitality, retail or district cooling. Not only do frameworks fish out these white spaces, but they support developers to efficiently design their assets with operations in mind.
Emaar is one pioneer in this field. In a double-whammy that both ensures maximum returns and high-end flagship and well-serviced communities like Dubai Downtown or Dubai Hills Estate, the master developer bakes the design and operations of its commercial holdings like business parks, golf clubs, malls or community management services early into its planning processes.
> Optimising designs to save on costs
Because ad-hoc changes are often expensive, early design optimisation is critical. By pre-planning manufacturing processes, construction logistics or operational specifications through a standard framework, developers can optimise design layouts and construction to achieve significant capital and operational savings.
For instance, by leveraging modular prefabrication or standardised details for elements like cladding, windowsills or handrails, project costs can be reduced. Additional savings can come from bulk procurements of standardised products from single source suppliers that frameworks mandate to be onboarded early.
Doha’s Stadium 974 is a great example. It is a 40,000-seat World Cup venue that was built from modified shipping containers and modular steel frames. Its “plug-and-play” approach cut overall design costs due to its adoption of modular units and reduction in material waste. Savings were even compounded by lower construction costs due to shortened site works and faster assemblies.
> Visibility across all lifecycle stages
Very frequently major national and city events such as Expos, Olympics and World Cups impose milestones on large-scale projects. Subsequently, all sub-development streams must be highly regimented to meet them.
By commanding the entire development timeline through a framework, the grand critical path spanning multiple years can be identified. Crashing schedules, overlapping floating activities, and procuring and onboarding contractors for early preparation are common practices.
To cater to the 2022 Fifa World Cup, Lusail Real Estate Development Company (LREDC) constructed utilities and tram systems in parallel to buildings. Also, LREDC set strict design guidelines to avoid late redesigns, contracted developers simultaneously, and strategised prefabricated components and 24/7 construction shifts to compress schedules.
> Mapping activities to maximise involvement
A codified development process clearly describes the roles of all stakeholders with full transparency. A delegation of authority matrix ensures accountability, maximises employee productivity and approaches partners early for a fully effective contribution.
For instance, concept designs are multidisciplinary documents known to benefit greatly from the input of sales and marketing or asset management teams. Even external partners such as retail or hospitality operators should be involved. Knowing this is often overlooked. A standardised manual can enforce these teams’ contributions as conditions for design approval.
> Integration for more sustainable design
Integrated teams are the kernel of sustainable designs. A solid framework with mandated team assignments makes sure engineering, construction, and operations and maintenance personnel all have a seat at the drawing table to design an efficient product from the outset.
For instance, incorporating specifications from district cooling operators or heat pump contractors allows engineering teams to design envelopes with appropriate U-values, optimising the performance of mechanical systems. Construction waste can be saved from landfills by designing to finishing standards shared early by suppliers.
In Abu Dhabi, the Al-Bahr Towers designers had an integrated facade team involved early on. Architects, facade engineers, technical specialists and contractors worked together to design the adaptive solar screens and mashrabiya-inspired automated shading. The result was improved building energy performance, better occupant comfort, lower glare, and a building envelope that is both aesthetic and functional.
> Stage gates to guard against deviations
Deviations from initial design intentions often arise due to constraints or requirements such as building codes, tight budgets, high material costs, communication siloes or contractors’ limited know-how. A structured framework, however, can dictate quality reviews at selected stage gates. This ensures the product remains aligned, not only with the initial business plan and design vision, but also with the organisation’s broader goals.
This issue has been of particular interest to megadevelopers in Saudi Arabia. Many are installing quality assessment controls at major stage gates based on standardised real estate delivery frameworks to deliver high-quality communities that remain true to their original visions and rendered perspectives.
The need for tailor-made solutions
Although real estate processes and activities are generally similar, there is no single blueprint or a ‘one-size-fits-all’ template for a successful framework. Instead, solutions have to be tailored to each institution and for multiple reasons.
For one, the diversity of corporate divisions and reporting structures makes it difficult to apply a single, standardised model of decision-making.
Second, smaller developers usually outsource many capabilities, leaving large activity gaps that are not performed internally and cannot be monitored or managed in a similar way to larger corporations.
Third, different development scales – such as district versus building level – by their nature involve different stakeholders, permitting processes, design scopes and operational protocols that challenge standardisation efforts.
Finally, development rarely unfolds in a linear sequence. Iterations, task leapfrogging and improvised activities are almost a daily routine. These incongruencies will ultimately test the framework’s ability to adapt to real-life situations.
That said, the clear track record of significant gains justifies why developers are stepping forward with the framework initiative regardless of the challenges. It is as the old adage reminds us, “without a master plan, failure is not an accident, it’s an outcome”.
Main image: Dubai Hills Estate
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SWPC tenders Riyadh East sewage treatment plant
7 October 2025
State water offtaker Saudi Water Partnership Company (SWPC) has issued a request for proposals (RFP) for the Riyadh East independent sewage treatment plant (ISTP).
The project will be developed under a build‑own‑operate‑transfer (BOOT) model with a 25‑year concession term.
The plant will have a treatment capacity of 200,000 cubic metres a day (cm/d) in its first phase, expanding to 400,000 cm/d in the second phase.
It includes the development of a treated sewage effluent transmission pipeline, forming part of the kingdom’s wider programme to expand wastewater treatment capacity through public-private partnerships.
The targeted commercial operation date for the facility is 2029.
Recent tenders by SWPC have included ISTPs in Jeddah, Taif and Buraidah as part of the government’s drive to increase private sector participation in the utilities sector.
The Riyadh East ISTP is one of seven ISTP schemes that SWPC said it would procure between 2024 and 2026.
In November 2024, SWPC prequalified 53 companies that can bid for the seven planned ISTP projects and 41 for the independent water projects (IWPs).
The five IWPs have a total combined capacity of 1.7 million cm/d. The seven ISTP projects have a total combined capacity of 700,000 cm/d.
In September, SWPC received three bids from the private sector for the development of the Riyadh-Qassim independent water transmission pipeline project.
The project will have a transmission capacity of 685,000 cm/d. It will include a pipeline length of 859 kilometres and a total storage capacity of 1.59 million cubic metres.
SWPC also recently announced its preferred bidder for the Jizan cluster small sewage treatment plants and collection network project.
The $150m scheme involves the construction of 12 sewage treatment plants across the Jizan region in the southwest of the kingdom, with a combined treatment capacity of 74,700 cm/d.
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Abu Dhabi to tender Mid Island Parkway PPP by year end
7 October 2025
Abu Dhabi is expected to float the tender for the second phase of the Mid Island Parkway Project (MIPP) by the end of this year.
The project is planned to be developed on a public-private partnership (PPP) basis.
“Discussions are ongoing about floating the project on a PPP basis. The tender is expected to be in the market by the end of this year,” sources close to the project told MEED.
The project is expected to be implemented by the newly formed Abu Dhabi-based infrastructure platform Gridora.
In May, the Abu Dhabi Projects & Infrastructure Centre (Adpic) signed a memorandum of understanding (MoU) with Gridora to deliver transport infrastructure projects in the UAE capital.
The MoU enables the establishment of a working committee to explore potential opportunities and identify pilot projects, activities and initiatives that Gridora could undertake. These schemes include Adpic’s plans to deliver infrastructure projects in Abu Dhabi estimated to be worth over AED35bn ($9.5bn).
MEED has previously reported about increasing momentum in PPP project activity in Abu Dhabi. In July, Adpic and Australian infrastructure investor and developer Plenary Group signed an MoU to advance private sector engagement in infrastructure projects in Abu Dhabi.
The MoU establishes a foundation for partnership between the two organisations to plan, develop and implement strategic projects with the private sector in Abu Dhabi.
The MIPP is part of the emirate’s Plan Capital Urban Evolution programme.
The second phase of the MIPP involves the construction of about 11 kilometres (km) of highways, including a mix of three-, four- and five-lane highways.
The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.
The scope also covers the construction of three interchanges: the E20, E10 and Dumbbell interchanges on Al-Sammaliyyah Island.
Some of the project’s major structures include:
- E20 interchange – cast-in-place box girder / void slab bridges
- E10 interchange – cast-in-place box girder bridges
- I-girder bridges between Raha Beach West and Sas Al-Nakhl Island
- Causeway at Sas Al-Nakhl Island
- Cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island
- Tunnel between Al-Sammaliyyah Island and Bilrimaid Island
- Cut-and-cover or open tunnel on Bilrimaid Island
- Tunnel between Bilrimaid Island and Um-Yifeenah Island
In June last year, MEED exclusively reported that Abu Dhabi had awarded contracts for three packages of phase one of the MIPP.
The contract for package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors.
Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group.
Beijing-headquartered China Harbour Engineering Company and the UAE's Agility Engineering & Contracting Company won the contract for package 1C.
Phase one starts at the existing Saadiyat interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah highway.
It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.
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Kuwait cancels major oil tender
7 October 2025
The tender for the Kuwaiti oil project focused on the installation of a separation gathering centre (SGC), known as SGC-2, has been cancelled by Kuwait’s Central Agency for Public Tenders (Capt), according to industry sources.
The tender was cancelled in mid‑August because the low bid exceeded the project’s budget, sources said.
In May, MEED reported that the low bid submitted by UK-based engineering company Petrofac for the oil project had come in at more than double the project’s proposed budget.
Petrofac submitted a bid of KD422.45m ($1.37bn); the provisional budget for the project was KD207m ($670.2m).
Petrofac’s bid beat that of India‑based Larsen & Toubro, which was the only other bidder, with a price of KD441.07m.
The project is located in the eastern region of Kuwait referred to as EK‑2, and its scope also includes debottlenecking work in addition to the installation of the main units.
The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).
When the project was originally tendered in June 2024, the following companies were prequalified to bid:
- Hyundai Engineering & Construction Company (South Korea)
- Samsung Engineering (South Korea)
- Saipem (Italy)
- Sinopec Luoyang Engineering Company (China)
- Sinopec Engineering Incorporation (China)
- Tecnicas Reunidas (Spain)
- Larsen & Toubro (India)
- Daewoo Engineering & Construction (South Korea)
- Petrofac International (UK)
- GS Engineering & Construction (South Korea)
After years of delays in Kuwait’s oil sector, many projects have seen bids come in over budget.
In May, MEED revealed that the lowest bid for the contract to develop a new fuel depot in Kuwait’s Al-Mutlaa area came in 43% above the project’s target budget.
The client on the project is state-owned downstream operator Kuwait National Petroleum Company (KNPC).
Lebanon’s Consolidated Contractors Company (CCC) submitted a low bid of KD357.3m ($1.16bn) for the project, ahead of a deadline on 22 December last year.
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Contractors submit bids on five major oil projects in Kuwait
6 October 2025
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Contractors have submitted bids on five major oil projects in Kuwait worth a combined total of $6.55bn, increasing market confidence in activity in the country’s energy sector.
India’s Larsen & Toubro submitted the lowest bid on two contracts, while Spain’s Tecnicas Reunidas submitted the lowest bid on another.
Kuwait’s Combined Group Contracting (CGC) submitted the lowest bids for the remaining two contracts.
The first project focuses on developing two facilities: Separation Gathering Centre 1 (SGC-1) and Water Injection Plant 1 (WIP-1).
Tecnicas Reunidas submitted a low bid worth $2.47bn for this project.
The Spanish company also submitted another bid worth $2.55bn.
One of the prices submitted was its base option and the second was an alternative, according to industry sources.
The full list of bidders for this project was:
SGC-1
- Tecnicas Reunidas – KD754,288,464.875 ($2.47bn)
- Tecnicas Reunidas – KD778,440,100.072 ($2.55bn)
- Larsen & Toubro – KD812,937,222.000 ($2.66bn)
The second project is focused on developing SGC‑3 and WIP‑3; a low bid of $2.48bn was submitted by Larsen & Toubro.
The full list of bidders was:
SGC-3
- Larsen & Toubro – KD757,000,316.000 ($2.48bn)
- Sinopec Luoyang Engineering – KD855,058,903.888 ($2.80bn)
The third project covers the development of effluent water disposal plants for injector wells.
The plants, known as EWDP-1 and EWDP-2, are part of a broader upstream expansion scheme.
Larsen & Toubro is the frontrunner to win this contract with a bid of $1.30bn.
The full list of bidders was:
EWDP
- Larsen & Toubro – KD396700353.000 ($1.30bn)
- Petrofac International – KD414,170,442.000 ($1.36bn)
The fourth project relates to a new network for injecting effluent water in North Kuwait’s Rawdatain region.
CGC submitted a bid of KD23.7m ($77.5m). The scheduled duration of the project is 30 months.
The full list of bidders was:
New North Kuwait Effluent Water Injection Network for the Rawdatain Area
- Combined Group Contracting Company (CGC) – KD23,700,000 ($77.5m)
- Heavy Engineering Industries & Shipbuilding Company (Heisco) – KD28,000,000
- Mechanical Engineering & Contracting Company (MECC) – KD44,000,000
- Megha Engineering & Infrastructure – KD63,900,000
The fifth project is related to a new network for injecting effluent water into northern Kuwait in the Sabriya/Bahra area.
CGC submitted a bid of KD36.0m ($117.7m) for the project, which has a duration of 30 months.
The full list of bidders was:
New North Kuwait Injection Network for SA/BA Area
- CGC – KD36,000,000 ($117.7m)
- Heisco – KD46,100,000
- MECC – KD64,300,000
- Megha Engineering & Infrastructure – KD86,310,000
All five contracts were tendered by Kuwait’s state-owned upstream operator, Kuwait Oil Company (KOC).
Bids were submitted ahead of a deadline on 30 September.
On 19 September, MEED reported that KOC was planning to close bidding for the SGC projects before the end of the month.
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